PetroHunter Energy Corporation has entered into a non-binding letter of intent with Laramie Energy II, LLC, which outlines the basic terms of a purchase and sale agreement ("PSA") which the parties will attempt to negotiate. The PSA will provide that Laramie would acquire 100% working interest in PetroHunter's "Southern Piceance" properties in Garfield and Mesa Counties, Colorado.
PetroHunter's Southern Piceance properties covered by the proposed sale consist of approximately 1,059 net acres in Garfield and Mesa Counties, Colorado, including 16 wells which have been drilled, but not completed or connected to a pipeline. If the parties are able to reach agreement and all closing conditions are met, the closing would occur by April 30, 2008. PetroHunter retains all its interest in eight producing wells in Garfield County, which are operated by EnCana Oil & Gas (USA), Inc.
PetroHunter's Chairman and CEO, Charles B. Crowell, stated, "The sale of our Southern Piceance assets would provide PetroHunter with the ability to move forward one more step toward completing our existing wells, and conducting additional drilling and development in 2008, in Buckskin Mesa, our core area in the Piceance Basin. We expect the projected revenues from production in Buckskin Mesa to further enable the company to continue to implement its long-term exploration and development plans there and on our seven million-acre prospect in Australia."
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